Navistar Electric issued 1000 debenture bonds 8 years ago with a face value of $5,000 each and a bond interest rate of 12% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per year compounded semiannually, determine the present worth today of one bond. The present worth of one bond today is $[

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1(PW Analysis same Life and
Navistar Electric issued 1000 debenture bonds 8 years ago with a face value of $5,000 each and a bond interest rate of 12% per year
payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market
place is 10% per year compounded semiannually, determine the present worth today of one bond.
The present worth of one bond today is $1
Transcribed Image Text:1(PW Analysis same Life and Navistar Electric issued 1000 debenture bonds 8 years ago with a face value of $5,000 each and a bond interest rate of 12% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per year compounded semiannually, determine the present worth today of one bond. The present worth of one bond today is $1
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